Federal Title IV Programs

FEDERAL PELL GRANT

A Federal Pell Grant is an award to help undergraduate students pay for their education after high school. For the Pell Grant program, an undergraduate is one who has not earned a bachelor’s or professional degree. A professional degree would include a degree in such fields as pharmacy or dentistry. The dollar amount is based on the student’s and/or his/her family’s resources. Documented need is determined through the results of the Free Application for Federal Student Aid Report (FAFSA). This grant award does not have to be repaid.

FEDERAL SUPPLEMENTAL EDUCATIONAL

Opportunity Grant (FSEOG) This is a federal grant for undergraduates with exceptional financial need, as determined by JFK Muhlenberg Snyder Schools. The amount per year varies depending on need and availability of funds awarded to the Schools by the federal government. Documented need is determined through the results of the Free Application for Federal Student Aid (FAFSA). This grant award does not have to repaid.

THE WILLIAM D. FORD FEDERAL DIRECT

Loan Program Direct Loans are low-interest loans for students and parents to help pay for the cost of your college education. The lender is the U. S. Department of Education (DOE) rather than a bank or other financial institution. If you choose to borrow Direct Loans, you must complete Direct Loan Entrance Counseling and sign a Master Promissory Note (MPN) at www.studentloans.gov. Direct Subsidized loan eligibility is based on need. No interest is charged to the student nor is repayment required while the borrower is enrolled at least half-time.

Direct Subsidized loan eligibility is based on need. No interest is charged to the student nor is repayment required while the borrower is enrolled at least half-time.

Direct Unsubsidized loans are available to students who do not qualify for a Direct Subsidized Loan or qualify for only a partial Direct Subsidized Loan. Under this program, the borrower is responsible for the interest which accrues while the student is in school. The student may choose to make monthly payments while enrolled or defer all payments until six months after leaving school.

The Facts Regarding Federal Stafford Loans:

In order to receive a disbursement of Direct Loans, students must meet the student eligibility requirements. Interest rates will be established each year for Direct Subsidized, Direct Unsubsidized and Direct Plus loans. The interest rate will be the sum of a uniform index rate plus an add-on that varies depending on the type of loan and borrower’s grade level. For current rates, please visit: www.studentloans.gov.

The Federal loan limits for the Direct subsidized loan is $3,500 for freshman and $4,500 for sophomores. JFK Muhlenberg Snyder Schools programs are all Associate Degree level and thus no student is higher than a sophomore level student. For dependent students, an additional $2,000 unsubsidized loan is available in both grade levels. For independent students, an additional $6,000 is available to both levels.

The Direct Loan Program offers loan repayment plans (www.studentaid.govloanrepayment) designed to meet the needs of almost every borrower. Borrowers may choose from the standard, extended, graduated, income contingent, or the income-based repayment plan.

Students must complete Direct Loan Entrance Counseling in order to receive the loan disbursement. Loan Entrance Counseling allows you to understand your rights and responsibilities as a loan borrower. To complete the Loan Entrance Counseling, please visit: www.studentloans.gov.

Students must also complete a Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). To complete your MPN, please visit: www.studentloans.gov.

In most cases, once you’ve submitted the MPN and it’s been accepted, you won’t have to fill out a new MPN for future loans. You can borrow additional Direct Loans on a single MPN for up to ten years. Once you’ve completed the MPN, you’ll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount, fees, the expected disbursement dates and the expected disbursement amounts for which you are eligible. The financial aid package is intended to give you a clear understanding of the bottom line or net cost after all financial aid is applied.

Once a student ceases to be enrolled at least half-time (6 or more credits), the student must be advised to complete Student Loan Exit Counseling. To complete Loan Exit Counseling, please visit www.studentloans.gov.

ADDITIONAL INFORMATION

While every student wants free money in the form of scholarships and grants, not everyone can get enough free money to cover the entire cost of their programs. If you’ve filled out your FAFSA and have been offered federal student loans, here are some things to consider:

You don’t have to start paying back your federal student loans until you graduate or stop 2 8 FINANCIAL AID attending school at least half-time. If you get a private loan, you’ll probably have to start making payments right away.

The interest rate on a federal student loan is almost always lower than that on a private loan – and much lower than that on a credit card!

Students with greater financial need might qualify to have the government pay their interest while they are in school.

You don’t need a credit record to get a federal student loan.

You don’t need a cosigner to get a federal student loan.

Federal student loans offer a variety of repayment plans, including one that bases monthly payments on the borrower’s income.

Some borrowers are able to have at least a portion of their loans forgiven if they work in certain jobs for which there is a high demand.

Students may review their Stafford Loans on the National Student Loan Data System (NSLDS) – nslds.ed.gov. Loans are individually listed and, once registered, the student can view remaining balances, servicer information, school information and much more.

As you can see, a federal student loan is a much better option than a private loan or a credit card. However, do remember that you are responsible for repaying your loan, so don’t borrow more than you need for school-related expenses. If you find that you’re going to have trouble making your payments, be sure to get in touch with your lender as soon as possible to see what arrangements can be made.

PARENT LOANS

The U. S. Department of Education offers a loan program called the Direct Parent (PLUS) Loan. Parents can borrow a Parent PLUS Loan to help pay your education expenses if you are a dependent, undergraduate student. You must file a FAFSA and be enrolled at least half-time in an eligible program at an eligible school. Parents must be credit worthy to receive the loan.

The Facts Regarding Parent Plus Loans:

The annual borrowing limit on a Parent PLUS loan is equal to the student’s Estimated Cost of Attendance minus any other financial aid received.

Parent PLUS loans are the financial responsibility of the parents, not the student.

For Parent PLUS Loan interest rates, please visit: www.studentloans.gov. Interest is charged on a Parent PLUS Loan from the date of the first disbursement until the loan is paid in full.

The Parent PLUS Loan currently requires a fee; the current fee percentage can be found at www.studentloans.gov.

There are two repayment options available for the Parent PLUS loan: either 60 days after the loan is fully disbursed or to begin repayments six months after the dependent student graduates or ceases to be enrolled on at least a half-time basis.

To apply for the Parent PLUS loan, the parent borrower must complete a Master Promissory Note (MPN) and a loan application by visiting www.studentloans.gov.

JFK Medical Center Muhlenberg Harold B. and Dorothy A. Snyder Schools does not discriminate against any person on the basis of race, color, national origin, disability, sex or age in admission, treatment, or participation in its programs, services and activities. For further information about this policy, contact The Patient Representative Office at 732-321-7566.